The lender’s latest house price index confirms the trend reported by other indices of a UK housing market slowdown, as activity and value increases both cool on the back of concern surrounding the Bank of England’s potential base rate rise.
Indeed, house prices in the three months to October 2014 were 0.8 per cent higher than in the previous three months (May-July 2014), the slowest quarterly rise since December 2012 when house prices grew by 0.7 per cent.
Prices in the three months to October were 8.8 per cent higher than in the same three months a year earlier. On this measure, annual house price growth has been slowing since the middle of summer after reaching a peak of 10.2 per cent in July.
Martin Ellis, housing economist, comments “Activity continues to decline with mortgage approvals in September falling for the third successive month to a 14 month low, whilst home sales are at their lowest level since October 2013. The associated weakening in demand has brought supply and demand into better balance.
“The economy is, however, continuing to grow at a healthy pace and employment is still rising. These factors should support housing demand over the coming months. However, while the chances of an imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are concerned about the impact a rise could have on their monthly mortgage repayments over the next 12 months. This concern is likely to curb buying intentions.”
Source: The Movechannel